report: Economic Impact of Penn Highlands
Penn Highlands Healthcare annually contributes about $904 million to the
region’s economy, according to a report recently released by The Hospital &
Healthsystem Association of Pennsylvania (HAP). Penn Highlands also supports 3,800
jobs in the region.
As a non-profit organization, Penn Highlands
Healthcare also provided more than $39 million in charitable benefits to the region.
Penn Highlands Healthcare is comprised of four
regional hospitals – Penn Highlands Brookville, Penn Highlands Clearfield, Penn
Highlands DuBois and Penn Highlands Elk.
The HAP report shows both the human and financial
impact of Pennsylvania’s hospitals on communities across the state, as well as
on the state as a whole.
“Penn Highlands Healthcare plays a major role
in the economic and social well-being of our community,” said Raymond A.
Graeca, chief executive officer, Penn Highlands Healthcare. “We are a safety
net for our most vulnerable citizens, and are working to broaden our reach
through public health efforts.”
Highlands DuBois contributes more than $379 million to the economy through employment, purchased services and supplies from
businesses and capital spending.
Highlands DuBois pays nearly $112 million in salaries. The ripple effect of
those salaries through employment created indirectly by the hospital is an
additional $52 million, for a total benefit of $164 million in salaries and
community benefit and investment, Penn Highlands DuBois’ contribution amounts
to $16 million annually. This figure includes providing medical care to those
unable to pay; shortfalls in Medicaid and Medicare reimbursements to the
hospital; providing community services such as free health screenings; and
donations made by the hospital to charitable
organizations and community programs.
“Penn Highlands DuBois not only serves as a
beacon of healing for residents of this region, but it also is vital to the
region’s economic stability. The hospital and the people it employs support
local businesses and serve as a crucial economic stimulus. The importance of
community hospitals cannot be underestimated,” stated John Sutika, president of
Penn Highlands DuBois.
Statewide, all hospitals – nonprofit and
investor-owned combined – contributed nearly $104 billion to local and state
economies, an increase of almost $6 billion between 2011 and 2012.
Pennsylvania’s non-profit hospitals provided more than $5.8 billion in
charitable community benefits.
“Pennsylvania’s hospitals and health systems
are going through significant transitions as they redesign care delivery to
focus on improving patient quality and satisfaction, improve community health
and reduce per capita cost,” said HAP President and CEO Andy Carter. “Even during these transitions, they remain
solid economic assets and major employers, because they provide critical
services that are anchored in personal relationships. They will always be cornerstones
of their communities.”
The nearly $104
billion in economic impact includes the support of nearly 592,000 jobs –about
one in ten jobs in Pennsylvania.
The $5.8 billion in
charitable community benefits included more than $1 billion in unpaid patient
bills; nearly $2.3 billion to subsidize care for Medicare and Medicaid
beneficiaries; more than $428 million in financial assistance and charity care;
more than $262 million in subsidized
health services; nearly $135 million in community health improvement services
and programs in response to the health needs of their communities; more than
$674 million in hospital-based education programs to train highly skilled health
care professionals; more than $935 million in research to cure illnesses and
advance medical treatments and services; and more than nearly $14 million in
contributions and community-building activities.
HAP is a statewide membership services
organization that advocates for nearly 240 Pennsylvania acute and specialty
care, primary care, subacute care, long-term care, home health, and hospice
providers, as well as the patients and communities they serve. Additional
information about HAP is available online at www.haponline.org.